Linda, aged 70, said she was embarrassed enough about her debts – amounting to hundreds of pounds – to want to remain anonymous. “I could afford my bills before, but I’m really struggling now. I’ve never been in debt before,” she told the BBC. “I’m repaying in instalments, but the debt is not going down.”
She is far from alone. More than £7bn in bills and charges was owed to water, broadband, and energy companies by customers by March last year, according to the UK’s spending watchdog – and estimates suggest the total has grown since. One pensioner said the credit on her energy meter often ran out three or four days before she received her pension, though she said her supplier had been helpful after she told them she was struggling.
“Over £7bn owed to utility companies; most billpayers unaware of social tariffs and repayment plans, says NAO.”
But most people do not know help is available. The National Audit Office (NAO) said only a third of eligible broadband customers and 39% of water customers who were struggling to pay knew about social tariffs – discounted packages on essential bills, often available to people on benefits. The NAO added that energy customers on repayment plans owed £1,000 less on average than those in debt who were not.
The NAO’s report looked at the work of the three regulators in these sectors – Ofgem, Ofcom, and Ofwat – and found that household energy debt had jumped by 118% since 2021, following Russia’s invasion of Ukraine. Awareness of the Priority Services Register, a UK-wide project to help utility companies identify and support customers with extra communication, access or safety needs, also remained low.
“Regulators have made progress to support consumers, but they’re not keeping up with the pressure now facing millions of households,” said Gareth Davies, head of the NAO. “With debt rising sharply, it’s more important than ever to make regulation work so that people know what support is available and can contact essential providers when they need to.”
Sir Geoffrey Clifton-Brown, who chairs the Commons Public Accounts Committee, said: “It remains too difficult for consumers to contact companies when things go wrong, financial support is poorly promoted, while basic billing errors are pushing households further into debt.”